How Many Payday Loans Can I Get?

Date posted: Sept. 10, 2015

The number of payday loans that you can take out at once depends on the province in which you live. Payday loans are legal in all Canadian provinces with the exception of Quebec and Newfoundland, and while some places, like British Columbia, limit borrowers to a single loan, others, like Manitoba, allow subsequent loans.

Responsible Borrowing

Anyone who takes out a payday loan should be sure to borrow responsibly. Payday loans come with extremely high APRs for two reasons. First, because payday lenders do not run traditional credit checks, there is a great deal of risk involved with lending. Second, because consumers are meant to repay these loans within a period of seven to 30 days, the APR is just high enough to allow the lender to make a decent profit. However, consumers who take out loans they cannot repay often find themselves in an endless circle of debt, able only to make payments on the interest and late fees associated with the loan. This has prompted several Canadian provinces to take action.

Responsible Lending

Prior to 2008, the Canadian government rarely got involved with the payday lending industry. However, after receiving multiple complaints about high interest rates and the lenders’ failure to disclose information to consumers properly, many did get involved. Some provinces have effectively outlawed payday loans in an effort to protect consumers. Others, like Manitoba, have implemented strict limits on the amount of interest the lenders could charge. Saskatchewan, regulates every part of the lending process. This includes interest rate caps, caps on late fees, borrowing limits, and more. At this time, Manitoba is the only province allowing multiple payday loans with strictly regulated interest rates.

Taking Out Multiple Payday Loans

Although most Canadian consumers cannot take out multiple payday loans by law, those in Manitoba can. It is important to consider the potential implications of doing so, however. Many consumers have trouble repaying a single loan on time due to the high interest rates and fees, and adding additional loans only makes this more troublesome. Consumers are urged to only use payday loans when absolutely necessary, and to never take out more than one loan at a time in order to reduce the risks associated with defaulting on the payments.

Consider Alternatives

If you will need more than one payday loan to cover your debts until you get your next paycheck, you should consider other alternatives. For instance, an installment or personal loan gives you lower interest rates and more time to repay your debt, and you can get either of these even with bad credit if you are able to put up some collateral. If you do not have collateral, a co-signer may be able to help. These options may be a little more time-consuming, but they will save you money in the end, and they carry far less risk.

In short, Manitoba is the only Canadian province that allows consumers to take out multiple payday loans. All other provinces limit consumers to one outstanding loan at a time, which is in the consumer's best interest as it negates some of the risk associated with borrowing. When you use payday loans responsibly, they can help you out of tight spots until your next payday comes around.


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